Council mulls designating cut of sales tax for streets

One-eighth of 1 percent considered

SAN ANGELO, Texas - San Angelo City Council members are considering allocating an eighth of 1 percent of the city’s half-cent sales tax to street maintenance, pending more information from city staff.

“I would really like for you to investigate this,” Mayor Dwain Morrison said at Thursday’s council meeting.

The change would have to be approved by voters, and the earliest opportunity is the November elections, the staff said. The council wanted to approach the issue with caution.

“Nobody’s going to care what the streets are like when no water comes out of the tap,” resident Chris Cornell said during public comments. “Meddling with your means of funding long-term water supply, I think, is premature.”

Currently 28 percent of the city’s sales tax revenue is allocated to economic development, as approved by voters in 2010, and 72 percent goes toward water development. Any street maintenance funding would have to come from one of those allocations.

“I really don’t have a problem with the eighth,” resident Pat Molloy said. “I would hope you would at least hold that 28 percent dedicated to economic development.”

Although the tax code could allow for the city to designate up to a quarter of 1 percent to street maintenance, Roland Peña, director of economic development, said San Angelo can only pursue the one-eighth of 1 percent because of current debt obligations.

If voters approved the designation, he said the funds only could be used to maintain and repair streets in existence at the time of the vote. The city could not use it on streets built after the vote.

For the issue to go before voters by the November election, everything would have to be in place by Aug. 18.

“I think you should focus on water and tell your constituents streets are important and we understand, but we need to be looking over the hill,” Cornell said.